Talking about the R&D centre, Bhargava said: “The board has also approved an additional investment of Rs900 crore to set up various facilities, including testing for emission and safety. This will be over and above the Rs1,500 crore earlier announced to set up the test track.”

The company will build the plant in phases and will start operations by mid-2013 with an initial capacity of 1.5 lakh units a year, he added. Maruti currently sources diesel engines from Suzuki Powertrain India Ltd and Fiat India.